NHAI’s InvIT Monetisation Raises Over ₹16,000 Crore, Sets New Record

The National Highways Infra Trust (NHIT), operating under the National Highways Authority of India (NHAI), has achieved a milestone in its latest InvIT monetisation round, raising over ₹16,000 crore.

This significant achievement marks the largest-ever monetisation effort by NHAI and stands as one of the most substantial transactions in the history of India’s road infrastructure development. According to NHAI, the Letter of Acceptance (LOA) for this monumental initiative was issued in February. In the third round of monetisation, NHIT successfully secured unit capital of approximately ₹7,272 crore from prominent domestic and international investors. Additionally, it obtained debt financing amounting to around ₹9,000 crore from Indian lenders. These funds were allocated to acquire a stretch of 889 kilometres of national highways, involving a base concession fee of about ₹15,625 crore, with an additional concessional fee of ₹75 crore.

Investors participated in the book-building process, subscribing to units at a cut-off price of ₹124.14 per unit, representing a premium over the current Net Asset Value (NAV) of ₹122.86 per unit. Both existing and new investors showed strong interest in the offering, including foreign pension funds such as the Canada Pension Plan Investment Board and the Ontario Teachers’ Pension Plan Board, who subscribed to the upper limit of 25% each. Other notable investors encompassed domestic pension and provident funds, insurance companies, mutual funds, banks, and several others. NHAI itself also contributed by subscribing to 15% of the units at the same price point.

The cumulative realised value from all three rounds of NHIT monetisation now stands at ₹26,125 crore. This portfolio comprises 15 operating toll roads spanning approximately 1,525 kilometres across multiple states in India, including Assam, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, Uttar Pradesh, and West Bengal. The concession periods for these projects range from 20 to 30 years. Anurag Jain, secretary at the Ministry of Road Transport & Highways, said, “NHIT is a successful example of public-private partnership (PPP), in which it has played a very important role in supporting the National Monetisation Pipeline. While doing that, NHIT has established itself as a leading player in the InvIT space, playing a critical role in channelising financial capital into the further development of the Indian roads sector.”

Established in November 2021 to support the Government’s National Monetisation Pipeline, NHIT has been instrumental in mobilising funds for infrastructure development. Prior rounds of monetisation garnered around ₹12,000 crore, enabling the acquisition of eight operating road assets spanning 636 kilometres from NHAI. Units of NHIT, initially issued at ₹101 each, were listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in November 2021, signalling investor confidence in the trust’s prospects and contributing to the growth of India’s infrastructure landscape.